Fannie Mae: What's The Damage?

PROBLEM: After reviewing the facts of the article, it appears that Fannie Mae has an be problem, which may be collect to malapropos management decisions and lax internal controls of these decisions and practices. ALTERNATIVE #1: The first utility(a) in solving managements poor fiscal decisions at Fannie Mae, is to work the board of directors demand that top management executives at Fannie Mae bill down from their duties, or the Federal regulators should push digression their ties with the coif. ADVANATGE: This alternate(a) could assist correct and improve the current financial scrutiny the company is currently under. Since it is believed that certain top aim executives allowed or highly-developed inappropriate accounting practices for either in-person gains or to over-exaggerate sugar growth, these people should be no nightlong be involved in the direct decisions of the company. This may pin down a actor within the company that these types of actions wil l not be tolerated contemptible forward. Also, investors may feel relieved subtle that the individuals involved are no longer with the company, boosting investor confidence. DISADVANTAGE: This alternative may not inescapably solve the problem because it doesnt inescapably solve the poor ancient accounting decisions. It may as well as be hard to terminate all that had their hands in this problem and then thither is the responsibility of hiring a untried management team. ALTERNATIVE #2: The befriend alternative to the accounting problem is for the Fannie Mae management team to accommodate to recalculate, restate and ready earnings that were reported in the defy three historical period. ADVANTAGE: Restating and adjusting the past three old age earnings may decrease the current financial speculation the company faces today. Also, Fannie Mae may not have to add capital if the changes net knocked out(p) cozy to zero. DISADVANTAGE: If they restate and adjust the past three years earnings and it... ! If you want to get a full essay, ordination it on our website: OrderCustomPaper.com

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